USD/CHF Price Analysis: Buyers reclaim 0.9700 on fragile sentiment

• The USD/CHF cuts some of its weekly losses, from 1.37% to 0.70%.
• US equities fluctuate, reflecting investors’ mixed sentiment, courtesy of Google’s halting hiring.
• USD/CHF Price Analysis: A break above 0.9800 would open the door toward 0.9900.

The USD/CHF bounces from weekly lows around 0.9650s, trimming some of its weekly losses and rises towards the 50-day moving average (DMA) around 0.9726, courtesy of fragile market sentiment, swinging between risk on/off, during the New York session. At the time of writing, the USD/CHF is trading at 0.9722, up 0.49%.

USD/CHF Price Analysis: Technical outlook

During the Asian session, the USD/CHF began trading around 0.9678, near the daily lows. Later, the major climbed steadily, breaking the daily pivot point resistance level at 0.9710 and the 50-hour SMA at 0.9715, on its way towards the daily high at 0.9736.

USD/CHF Daily chart

The USD/CHF is upward biased, despite exchanging hands below the 50-day moving average (DMA) at 0.6721. On Tuesday, the USD/CHF pair encountered bids just above the 61.8% Fibonacci retracement, as the major retraced nearly 100 pips daily, hitting a daily low of 0.9654, nine pips above the Fibonacci level. As buyers stepped in, the major broke above the 50% Fibonacci retracement and is facing solid resistance around the July 18 daily low at 0.9730.

Therefore, the USD/CHF first resistance would be 0.9730. A breach of the latter will expose the July 19 daily high at 0.9786, followed by 0.9800. Once cleared, a re-test of the July 14 swing high at 0.9886 is on the cards.

USD/CHF Key Technical Levels